ECB plots Amazon-style market to prevent Wall Street COVID-19 debt swoop

  • 📰 ChannelNewsAsia
  • ⏱ Reading Time:
  • 41 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 66%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Europe is working on an Amazon-style website to sell hundreds of billions of euros of bank loans which have been soured by the coronavirus crisis, ...

FRANKFURT/NEW YORK: Europe is working on an Amazon-style website to sell hundreds of billions of euros of bank loans which have been soured by the coronavirus crisis, in a bid to shore up the economy and challenge the dominance of big Wall Street debt investors.

"The market for bad loans has been dominated by a few very large buyers. In a typical scenario, one of these firms may buy a very large portfolio at steep discounts," O'Brien said. The ECB scheme, which has yet to be signed off and will be discussed with European Union officials on Friday, is inspired by Italian website BlinkS, which links buyers and sellers of loans, as well as debt auctions by a US federal agency.

"Success in buying and selling bad loans involves a lot of insider information. COVID means more bad loans ahead. Any sale must be transparent," Jazbec added. Under the new platform contemplated by the ECB, which could be up and running early next year, the packet size could be cut to €10 million, attracting smaller buyers who may pay more.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

COVID-19 vaccine verdicts loom as next big market riskOptimism that vaccines are on the way to end the coronavirus pandemic has been a major factor in this year’s U.S. stock resurgence. That will face ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

COVID-19 vaccine verdicts loom as next big market riskOptimism that vaccines are on the way to end the coronavirus pandemic has been a major factor in this year’s U.S. stock resurgence. That will face ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »